Keywords

A.M. Best Comments on Credit Ratings of Wilton Reassurance Company and Its Subsidiaries Following Announced Transaction

A.M. Best has commented that the Credit Ratings of Wilton
Reassurance Company (Wilton Re) (Minneapolis, MN) and its insurance
subsidiaries remain unchanged following the Aug. 1, 2018, announcement
that Wilton Re has reached a definitive agreement to reinsure a $2.7
billion block of long-term care (LTC) insurance policies issued by Bankers
Life and Casualty Company (Bankers Life) (Chicago, IL). The outlooks
of these Credit Ratings (ratings) remain stable.

Under the terms of the agreement, Wilton will assume 100% of the LTC
claims for the block reinsured from Bankers Life. This is Wilton Re's
first LTC transaction. While the impact to Wilton Re's balance sheet is
material given the size of the acquired blocks, A.M. Best notes that
pro-forma risk-adjusted capitalization will remain supportive of Wilton
Re's current ratings. The transaction is expected to close in the third
quarter of 2018, pending regulatory approval and other customary closing
conditions.